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The upcoming IPO, one of the largest in recent years, is set to put a whopping Rs 9,000 crore in the hands of 5,000 staffers
Swiggy IPO Opens Today
Swiggy’s much-anticipated IPO may not deliver major listing gains for retail investors, but it promises a significant windfall for employees holding ESOPs.
The upcoming IPO, one of the largest in recent years, is set to put a whopping Rs 9,000 crore in the hands of 5,000 staffers who have been associated with the company for several years and scaled it.
Swiggy’s employee stock option (ESOP) payout exercise will be among the top ones in India’s startup scene where companies generating wealth at this scale is rare. Before Swiggy, Flipkart had carried out a similar exercise and paid a staggering $1.4-1.5 billion (Rs 11,600-12,500 crore) to its current and former employees in what was one of the largest wealth creation drives in India’s startup ecosystem. Flipkart’s payouts include the company’s recent payment of Rs 5,800 crore ($700 million) to 17,000 current and former employees in July 2023.
While that was one of the single largest ESOP payouts for the Walmart-owned giant, the company had over five share buybacks worth $1.4-1.5 billion (Rs 12,000 crore) in total over the past years.
While other startups have also put money in the hands of employees, very few have come close to what Flipkart and Swiggy did.
Last month, there were reports that Swiggy co-founders Sriharsha Majety, Nandan Reddy and Phani Kishan, food marketplace CEO Rohit Kapoor, Swiggy Instamart head Amitesh Jha, CFO Rahul Bothra, HR head Girish Menon and CTO Madhusudhan Rao and several others had received $200 million (Rs 1,600 crore) in ESOPs ahead of the IPO.
Swiggy’s rival, Zomato, which listed on the exchanges in 2021 also created wealth for its staffers during its IPO. The Gurugram-based company had an ESOP pool of around Rs 7,000 crore back then and has continued to reward employees in the recent years, too.
Swiggy IPO Listing Today
Swiggy’s IPO, set to raise Rs 11,327 crore, has a price band of Rs 371-390 per share. The grey market premium (GMP) of Rs 2, however, indicates only a marginal gain of 0.51% above the issue price, suggesting a subdued listing on Wednesday.
Founded in 2014, Swiggy has expanded to partner with over 200,000 restaurants across India, competing with Zomato, Amazon, and Tata BigBasket.
Despite reporting a loss of Rs 2,350 crore in FY2024, Swiggy continues to grow, signaling potential for future gains in a highly competitive market.
